A parable: The “One-Year Venomous Cicada X” Wednesday, May 27 2020 

The periodic cicada is an insect, called “periodic” because it appears once every so-many years. For instance, one type of periodic cicada, the 17-year cicada, lives in North America and spends almost its entire life underground, sipping juices from plant roots and molting several times as it grows.Periodical Cicada | Songs of Insects

At the end of each 17 year, underground period, millions of these insects simultaneously emerge from the ground for one purpose: Sexual reproduction.

During that short period they mate, often multiple times, and the females lay their eggs in tree stems, where the eggs mature to nymphs which crawl down into the ground and repeat the 17-year cycle.

A Parable

Let us say, for the purpose of our parable, that a new species of periodic cicada — the “One-Year Venomous Cicada X” — lives in just one place on earth: Your little village.

As per its name, the One-Year Venomous Cicada X has a venomous bite that can prove fatal, and the insect emerges for one week, once every year. For everyone’s protection, you need to get rid of the One-Year Venomous Cicada X.

How would you do it?

Each villager could find a special costly poison, being developed for the purpose, and lay it on the ground to destroy the nymphs before they emerge.

Or, you all could hire several hundred people to wait in your yards until the One-Year Venomous Cicada X emerges, and these people could run around with butterfly nets trying to catch all of the millions of cicadas after they emerge, but before they mate.

These methods would be expensive, possibly dangerous, extremely time consuming, and in the end, they might not work.

Meanwhile, the One-Year Venomous Cicada X keeps emerging, for one week, year after year, killing some villagers, sickening others, and threatening to spread to other locations.

In addition to developing two expensive, dangerous, time-consuming and problematic methods, you and your fellow villagers decide to consider two other approaches.

You all could stay indoors, distancing yourselves from the cicadas, during the week every year that the One-Year Venomous Cicada X emerges. 

But during that time your businesses would suffer from your absences and some would go bankrupt. Jute / Burlap - American Horticultural Supply

Or, you and your neighbors each could lay a sheet of permeable cloth on your respective back yards, just before emergence time.

Then, when the One-Year Venomous Cicada Xs emerge, they are caught under the cloth, and being unable to procreate, they die.

Although the cloth isn’t perfect — a few cicadas do manage to procreate — it does allow you to live your lives without closing your businesses or waiting for the poison and the butterfly nets to be developed and work, if ever. 

And, the cloths might actually do the job without the need for the poison or butterfly nets ever to work.

“Nobody can tell me what to do.”

So your village votes to mandate that every year, just prior to emergence, everyone must lay a cloth on their yards, for one week.

Unfortunately, the village manager himself refuses to lay a cloth on his yard because he says it “looks bad.”

And his selfish followers, taking their cue from their clueless leader, and claiming “Constitutional freedom” also refuse to lay cloths.

So although the vast majority of the villagers do lay cloths, which kill a great number of the One-Year Venomous Cicada X, those few who don’t ruin it for the rest.

And while waiting for an approved poison and butterfly nets to work, many people continue to lose their jobs and businesses, and die from the One-Year Venomous Cicada X bites.

The End

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Rodger Malcolm Mitchell

Monetary Sovereignty Twitter: @rodgermitchell Search #monetarysovereignty Facebook: Rodger Malcolm Mitchell …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

THE SOLE PURPOSE OF GOVERNMENT IS TO IMPROVE AND PROTECT THE LIVES OF THE PEOPLE.

The most important problems in economics involve:

  1. Monetary Sovereignty describes money creation and destruction.
  2. Gap Psychology describes the common desire to distance oneself from those “below” in any socio-economic ranking, and to come nearer those “above.” The socio-economic distance is referred to as “The Gap.”

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics. Implementation of Monetary Sovereignty and The Ten Steps To Prosperity can grow the economy and narrow the Gaps:

Ten Steps To Prosperity:

1. Eliminate FICA

2. Federally funded Medicare — parts A, B & D, plus long-term care — for everyone

3. Social Security for all or a reverse income tax

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%”) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. I

Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy and narrow the income/wealth/power Gap between the rich and the rest.

MONETARY SOVEREIGNTY

The real reasons why Trump’s incessant lying works so well. Saturday, Dec 22 2018 

President Trump may tell more lies than anyone, even any politician, in U.S. history. Yet his followers don’t seem to mind.

This phenomenon has the rational people of America puzzled and infuriated. “How can they not see or care what a liar he is?”.

My long-time explanation has been:

Trump hates the same people his followers hate.

Trump hates foreigners, especially non-white foreigners who come from “shithole countries: Mexicans, South and Central Americans, and Muslims, blacks, browns, yellows, reds, gays, and anyone who tells the truth about him.

His followers hate the same people, so though Trump lies about virtually everything, his followers remain loyal, as long as he continues to spew bigoted hatred.

So when Trump said, “I will be proud to shut down the government. I will take the mantle. I will not blame you (Democrats) for it” yesterday, and then today wrote, “Democrats own the shutdown,” Trump’s followers were not troubled.

One may ask, “Are these people stupid?” Perhaps they are, but I suspect there is something in addition to the above-mentioned, stupid bigotry going on:

How a powerful Russian propaganda machine chips away at Western notions of truth
By Joby Warrick and Anton Troianovski

The initial plan was a Cold War classic — brutal yet simple. Two Russian agents would slip onto the property of a turncoat spy in Britain and daub his front door with a rare military-grade poison designed to produce an agonizing and untraceable death.

But when the attempted assassination of Sergei Skripal was botched, the mission quickly shifted. Within hours, according to British and U.S. officials who closely followed the events, a very different kind of intelligence operation was underway — an elaborate fog machine to make the initial crime disappear.

False narratives and conspiracy theories began popping up almost immediately, the first of 46 bogus storylines put out by Russian-controlled media and Twitter accounts and even by senior Russian officials, all of them sowing doubt about Russia’s involvement in the March 4 assassination attempt.

Ranging from the plausible to the fantastical, the stories blamed a toxic spill, Ukrainian activists, the CIA, British Prime Minister Theresa May, and even Skripal himself.

Variations on the technique existed during the Cold War, when the Soviet Union used propaganda to create alternative realities [What Trump’s mouthpiece, Kellyanne Conway, termed, “alternative facts.”]

But the disinformation campaigns now emanating from Russia are of a different breed, said intelligence officials and analysts.

Engineered for the social media age, they fling up swarms of falsehoods, concocted theories, and red herrings, intended not so much to persuade people as to bewilder them.

And that is the secret to the power of Trump’s constant lying. It is done, not so much to persuade his people, but rather to bewilder them.Image result for trump pinocchio

(After all these months, who would be persuaded by anything Trump says? Who can even remember what he has said?)

Did he say he would or would not take the blame for the shutdown? Did he admit or deny having an affair with Stormy Daniels and numerous other women? Did he, or did he not, claim the purpose of a Russian meeting was to discuss the adoption of Russian children. Is Michael Cohen a “good man” or “a liar”?

The list of lies and contradictions is endless. Like cockroaches, as soon as one is stomped down, ten more appear.

What did Trump say last about Manafort, about Gates, about Flynn?  Can you keep track of the criminals, miscreants, traitors, flimflam artists, and swamp creatures with whom Trump has surrounded himself and foisted on us?

And this doesn’t even include the other criminals that Trump once claimed were “unbelievable,” until they were found to be actually unbelievable: Shulkin, Porter, Manigault-Newman, Price, Bannon, Scaramucci, Yates, Pruitt, et al — all of whom were great until they weren’t.

Can you even remember all those names?

“The mission seems to be to confuse, to muddy the waters,” said Peter Pomerantsev, a former Russian-television producer and author of Nothing Is True and Everything Is Possible, a memoir that describes the Kremlin’s efforts to manipulate the news.

The ultimate aim, he said, is to foster an environment in which “people begin giving up on the facts.”

Most people, even those intelligent enough to see that Trump is both incompetent and untrustworthy, are confused by his lies.

When pro-Russian separatists shot down Malaysia Airlines Flight 17 over eastern Ukraine, killing 298 passengers and crew members, Russian officials and media outlets sought to pin the blame on the Ukrainian government, suggesting at one point that corpses had been trucked to the crash site to make the death toll appear higher.

In October 2015, months after U.S. and European investigators concluded that Flight 17 had been brought down by a Russian missile fired by separatists, then–presidential candidate Donald Trump told CNN that the culprit was “probably Russia” but suggested that the truth was unknowable.

“To be honest with you, you’ll probably never know for sure,” he said.

The effect of Trump’s constant lies is buttressed by his using the old Hitlerian trick of blaming the opposition for his own faults.

Thus, the crooked owner of the scam operation, Trump University, and the criminal head of the illegal Trump Foundation got away with referring to “Crooked Hillary.”

And the unindicted co-conspirator was able to get his followers to chant, “Lock her up! Lock her up! Lock her up!”

And the draft dodger with phony “bone spurs,” was able to convince his followers that Senator John McCain was “no hero” because he was captured.

And the ultimate liar was able to get away with calling Ted Cruz, “Lyin’ Ted,” perhaps assisted by the fact that Cruz really is a liar.

And the crook with multiple bankruptcies of casinos (who could bankrupt a casono) gets away with “Failing NY Times.”

And the man of infinite lies gets away with “Sneaky Dianne Feinstein.”

Putin brought Russia’s privately owned, freewheeling TV networks to heel in one of his first major moves as president.

The Kremlin now controls all of Russia’s main national television channels.

They deliver a strident, conspiratorial, pro-Kremlin message in hours of lavishly produced talk shows and newsmagazine programs every night.

This is what Trump has said he wants to do: Sue and destroy any “fake media” that tell “fake news” he doesn’t like.

Providing further amplification are social media “troll” factories where hundreds of workers are paid to disseminate false stories on the internet, under official direction.

The U.S. version of “troll factories” is Trump himself, aided and abetted by Fox “News,” Rush Limbaugh, and Breitbart.

Russian politicians and diplomats then chime in, often ridiculing any official investigation and denouncing claims of Russian involvement.

The U.S. version of the above is the GOP, who despite repeated indictments and convictions of Trump’s traitorous associates, continue to parrot the claim that Mueller’s investigation is a witchhunt that should end.

As for who to believe, who you can’t believe, can you believe at all?” Putin mused, before answering his own questions: “You can’t believe anyone.

Certainly, not Donald J. Trump.

In short, Trump’s firehose stream of lies is designed to exhaust the listener, so that everything blends into a fog. He relies on false equivalences to confuse among “bad” lies, “white” lies, exaggerations, the truth.

When he is accused of lying, his acolytes mention some other person, usually “Hillary, “Obama,” or “the Democrats,” who may or may not have done something bad, and whatever that may be, excuses everything Trump does.

“Trump separates children from their parents” is equated with the myth of “Benghazi.” “Trump has told more than 3,000 lies this year,” is excused by “Well, Obama lied too.” Every Trump failing is excused, most often by a false reference.

And because he has so many failings, nothing stands out, and everything is excused by his followers, with references to “Hillary, Obama, the Democrats.”

That is the genius of the man: Confusing his followers with volume.

Rodger Malcolm Mitchell
Monetary Sovereignty
Twitter: @rodgermitchell; Search #monetarysovereignty
Facebook: Rodger Malcolm Mitchell

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

The single most important problems in economics involve the excessive income/wealth/power Gaps between the have-mores and the have-less.

Wide Gaps negatively affect poverty, health and longevity, education, housing, law and crime, war, leadership, ownership, bigotry, supply and demand, taxation, GDP, international relations, scientific advancement, the environment, human motivation and well-being, and virtually every other issue in economics.

Implementation of The Ten Steps To Prosperity can narrow the Gaps:

Ten Steps To Prosperity:
1. Eliminate FICA

2. Federally funded medicare — parts a, b & d, plus long-term care — for everyone

3. Provide a monthly economic bonus to every man, woman and child in America (similar to social security for all)

4. Free education (including post-grad) for everyone

5. Salary for attending school

6. Eliminate federal taxes on business

7. Increase the standard income tax deduction, annually. 

8. Tax the very rich (the “.1%) more, with higher progressive tax rates on all forms of income.

9. Federal ownership of all banks

10. Increase federal spending on the myriad initiatives that benefit America’s 99.9% 

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

Donald Trump, a “charitable man” Tuesday, Jul 5 2016 

[What single word would you say best describes someone who continually boasts and repeatedly lies about his charitable giving?]

Donald Trump is a rich and charitable man. How do I know? He says so.

And says so.

And says so.

Did Donald Trump violate IRS rules?

Four years ago, at a charity fundraiser in Palm Beach, Donald Trump got into a bidding war at the evening’s live auction. The items up for sale: A Denver Broncos helmet, autographed by then-star quarterback Tim Tebow, and a Tebow jersey.

Trump won, eventually, with a bid of $12,000. Afterward, he posed with the helmet.

But Trump didn’t actually pay with his own money.

Instead, the Susan G. Komen organization — the breast-cancer nonprofit that hosted the party — got a $12,000 payment from another nonprofit , the Donald J. Trump Foundation.

Trump himself sent no money (In fact, a Komen spokesperson said, Trump has never given a personal gift of cash to the Komen organization).

He paid the bill with money from a charity he founded in 1987, but which is largely stocked with other people’s money. Trump is the foundation’s president. But, at the time of the auction, Trump had given none of his own money to the foundation for three years running.

Trump’s campaign did not respond to requests for comment.

And then there is this:

Mr. Trump’s fake charity

DONALD TRUMP, perhaps the greatest braggart ever to aspire to national office, is hardly shy about flaunting — or rather hyping — his good works.

So it has been with his charitable giving, which, for the better part of 30 years, he has regularly exaggerated to the point of plain mendacity.

Speaking of his royalties from the reality television show “The Apprentice,” Mr. Trump told the radio personality Howard Stern that “I’m giving the money to charity,” mentioning that as the show’s host he had been paid “a lot more than” $1 million.

The money, Mr. Trump said, would go to AIDS research and the Police Athletic League.

Yet that year Mr. Trump’s foundation — the entity he established to bestow charitable gifts — gave just $1,000 for AIDS research and $106,000 to the Police Athletic League.

And while he promised in the late 1980s to give royalties from his successful book, “The Art of the Deal,” to charities for the homeless, Vietnam veterans, AIDS and multiple sclerosis, only 8 percent of his charitable giving in those years went to those causes.

Much more went to society galas, his alma maters and the exclusive schools his children attended.

Mr. Trump’s exaggerated eleemosynary claims match his long history of embroideries, overstatements and wildly inflated assertions of prowess in other endeavors.

The GOP candidate’s whoppers come so fast and thick that it’s easy to lose track, and it’s tempting to ignore much of what he says. That would be a mistake.

Contempt for the truth is a disqualifying feature in a candidate for the presidency.

And this:

There’s something fishy about Donald Trump’s charitable donations

Trump has said he donated $102 million worth of cash and land to philanthropic and conservation organizations over the past five years.

But his campaign has provided little documentation for most of these contributions, and tax filings of the Donald J. Trump foundation show Trump has made no charitable contributions to his own namesake nonprofit since 2008.

Without an endowment, the fund has continued to give grants only as a result of contributions from others.

Pressed by the AP on the details of his contributions, Trump campaign spokeswoman Hope Hicks provided a partial list of donations that appeared to correspond with the foundation’s gifts — indicating that Trump may be counting other people’s charitable giving as his own.

“I give to hundreds of charities and people in need of help,” Trump said in an emailed response to questions from the AP about how he tallied his own philanthropy. “It is one of the things I most like doing and one of the great reasons to have made a lot of money.”

The Trump campaign did not respond to a request that it identify donations that Trump himself gave.

And this:

Trump Foundation Admits Error On Charity Donation

Donald Trump’s charitable foundation has admitted to mistakenly donating $25,000 to an organization aligned with Florida Attorney General Pam Bondi — a potential violation of federal rules prohibiting charities from assisting political candidates.

Of course, all the “mistakes” about Trump’s charity could be resolved if he revealed his tax returns, as every other Presidential candidate has done — as Trump himself has promised but failed to do.

What single word best describes someone who continually boasts and repeatedly lies about his charitable giving, while cheating innocent “students” of his questionable “schools?

My vote: “Slime.”

What’s yours?

Rodger Malcolm Mitchell
Monetary Sovereignty

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Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

Why I am so tired of “doing the Semmelweis” Saturday, Jun 25 2016 

Does the name Ignaz Semmelweis sound familiar? I empathize with him and the memory of him exhausts me.

Here is a bit of history:

The year was 1846, and our would-be hero was a Hungarian doctor named Ignaz Semmelweis.

It was a time when physicians were expected to have scientific training.

So doctors like Semmelweis were no longer thinking of illness as an imbalance caused by bad air or evil spirits. They looked instead to anatomy. Autopsies became more common, and doctors got interested in numbers and collecting data.

Semmelweis wanted to figure out why so many women in maternity wards were dying from puerperal fever — commonly known as childbed fever.

When Semmelweis crunched the numbers, he discovered that women in the clinic staffed by doctors and medical students died at a rate nearly five times higher than women in the midwives’ clinic.

(After much research), Semmelweis hypothesized that there were cadaverous particles, little pieces of corpse, that students were getting on their hands from the cadavers they dissected.

And when they delivered the babies, these particles would get inside the women who would develop the disease and die.

So he ordered his medical staff to start cleaning their hands and instruments not just with soap but with a chlorine solution.

Semmelweis didn’t know anything about germs. He chose the chlorine because he thought it would be the best way to get rid of any smell left behind by those little bits of corpse.

And when he imposed this, the rate of childbed fever fell dramatically.

What Semmelweis had discovered is something that still holds true today: Hand-washing is one of the most important tools in public health. It can keep kids from getting the flu, prevent the spread of disease and keep infections at bay.

You’d think everyone would be thrilled. Semmelweis had solved the problem! But they weren’t thrilled.

For one thing, doctors were upset because Semmelweis’ hypothesis made it look like they were the ones giving childbed fever to the women.

Eventually, the doctors gave up the chlorine hand-washing.

Semmelweis kept trying to convince doctors in other parts of Europe to wash with chlorine, but no one would listen to him.

Even today, the Centers for Disease Control and Prevention says hand hygiene is one of the most important ways to prevent these infections.

Semmelweis failed because the establishment did not want to know the truth, and definitely did not want the public to know the truth.

Semmelweis ultimately died in an asylum. Women continued to die of childbed fever.

Now, 170 years later, people die of hospital-caused infections. Yet, you still have to remind careless nurses and doctors to use hand cleaner each time they visit your room.

When it comes to human belief, facts are far less important than emotion. Despite the absolute fact that hand cleaning prevented childbed fever, doctors didn’t want to believe it and didn’t want the public to believe it.

And that is why I empathize with Semmelweis.

It is an absolute fact that the U.S. government originally created the U.S. dollar from thin air, simply by creating laws from thin air. The laws made the dollar everything it is, and subsequent laws will make the U.S. dollar everything it will be.

The dollar is wholly the creation of U.S. laws, nothing more.

And just as laws have no physical existence, so too the dollar has no physical existence. You cannot see, feel, taste, smell, or hear a law. Similarly, you cannot see, feel, taste, smell, or hear a dollar. It is nothing more than a legal entity.

As the creator of the legal entity named a “dollar,” the U.S. government was, and is, sovereign over that legal entity. It created as many dollars as it wished by the stroke of a pen, and gave these dollars the value it wished, also by the stroke of a pen.

Still today, the government creates as many dollars as it wishes, this time by the press of a computer key. And still today it gives those dollars the value it wishes, also with a computer key.

The U.S. government has the power of Monetary Sovereignty, though it often has not used that power to help the populace.

It is an absolute fact that the U.S., a Monetarily Sovereign nation, cannot unintentionally run short of its own sovereign currency.

And it is an absolute fact that today’s establishment, like the doctors of Semmelweis’s day, do not want you to understand Monetary Sovereignty.

Because the public believed the doctors, who had authority, women did not understand the need for hand washing. So they died in agony.

And because today’s public believes the media, the politicians and the university economists, people do not understand Monetary Sovereignty, so we die the agony of economic deprivation.

We have poverty. We have sickness and unaffordable health care. We have hunger and homelessness. We have a corroded infrastructure. We have a corroded educational system. We have federal taxes.

And all are unnecessary and could be cured or at least ameliorated if people only understood Monetary Sovereignty.

Every day I see articles about the “unsustainable” federal debt. They are wrong.

The so-called “federal debt,” is nothing but the total of deposits in T-security accounts at the Federal Reserve Bank. It is utterly sustainable. It could be paid off tomorrow, simply by transferring the dollars that exist in those accounts back to the owners’ checking accounts, from whence they came. No new dollars required.

That is an absolute fact.

Every day, I see articles about “unaffordable” social programs like Social Security, Medicare, Medicaid, aids to the poor and aids to education. They are wrong.

Because the U.S. federal government is Monetarily Sovereign, and never can run short of its own sovereign currency, the dollar, it can afford anything that costs dollars.

Unlike states, counties, cities, businesses, you and me, all of which are monetarily NON-sovereign, the federal government doesn’t need or even use income. It pays its creditors by creating dollars ad hoc, from thin air.

Even if every federal tax — FICA, income taxes, luxury taxes, inheritance taxes et al — fell to $0, the federal government could continue spending, forever.

That is an absolute fact.

And every day, I see articles claiming that if the federal government taxed too little, or spent too much, we would have a Zimbabwean or Argentinian hyper-inflation. They are wrong.

Being Monetarily Sovereign, the U.S. government controls the value of its own sovereign currency, the dollar.

Originally, it exercised this control by ruling that each dollar was worth a certain weight of silver or gold, a ruling the government arbitrarily changed many times over the years. The more silver or gold backed each dollar, the more the dollar was worth.

Today, silver and gold no longer back the value of the dollar. That function now is fulfilled by interest rates.

The higher the interest rates, the more in demand are dollar-denominated bonds, notes, and bills, and the more in demand are the dollars with which to buy these bonds, notes, and bills. The increased demand for dollars increases the value of dollars, which is counter to inflation.

When the U.S. Federal Reserve senses inflation, it raises interest rates, and when it deems inflation too low, it lowers rates. By controlling interest rates, the Fed controls inflation.

These are absolute facts, just as true as Semmelweiss’s assertion that hand-washing helps prevent disease — and just as disbelieved by the public.

And as Semmelweis’s peers did not want the public to understand the truth about hand-washing, todays politicians, media and university economists do not want the public to understand the truth about Monetary Sovereignty.

Potential loss of prestige and power motivated Semmelweis’s peers to tell their big lie; potential loss of prestige and power is what motivates today’s BIG LIE in economics.

It begins with the rich. What makes them rich? The power and prestige Gap between them and the rest of us. If there were no Gap, no one would be rich and no one would be poor. We all would be the same.

So the rich want to widen the Gap. That is their primary motivation.

And to widen the Gap they bribe the politicians (via campaign contributions), bribe the media (via ownership of the media), and bribe the economists (via contributions to universities).

They bribe these people to tell THE BIG LIE, so all you read and hear is based on THE BIG LIE, and as a result, you believe THE BIG LIE.

What is THE BIG LIE? Here it is in just 5 words: FEDERAL TAXES FUND FEDERAL SPENDING.

Unlike state taxes, unlike county taxes, and unlike city taxes, federal taxes do nothing but remove dollars from the economy. They do not fund anything. Once received they disappear from the money supply. They are a net loss for the economy and for taxpayers.

Belief in THE BIG LIE has caused more economic damage than all the wars, all the floods, all the droughts, all the volcanic eruptions and all the crime in world history.

The absolute fact is: Federal taxes are too high and federal spending is too low.

My friend Stephanie Kelton, the chair of the economics department at the University of Missouri, Kansas City, understands Monetary Sovereignty well. She was hired by Bernie Sanders to be his chief economics advisor.

Yet, Bernie’s proposals are filled with commentary about how certain federal taxes would support his suggested federal programs.

Bernie knows this is a lie, because Stephanie knows it is a lie. They know federal taxes do not fund federal spending. They know the federal government cannot run short of the currency it invented. They know our social programs are not financially “unsustainable.”

They know the federal deficit, far from being an economic problem is an economic necessity for growth. They know every depression in U.S. history has been introduced with federal surpluses, and nearly all recessions have been introduced with deficit reduction.

But in our climate of economic ignorance, Bernie and Stephanie are afraid to tell the truth to the public. It would be Galileo arguing with Pope Urban VIII.

Like poor, old Semmelweis, I’ve spent 20 years trying to help the public see what would benefit them, and the public has used those 20 years to respond with invective.

The facts are:
–The Gap between the rich and the rest is too wide and it’s widening. The middle class is decimated and the poor are in worse shape than they were 20 years ago.
–The Gap could be reduced greatly, and the economy could prosper, by recognition of Monetary Sovereignty and by the implementation of the Ten Steps to Prosperity (below).

Imagine you are a doctor with morbidly obese patients, who also smoke. You try to show them how and why to lose weight and to stop smoking. But they tell you you’re not only wrong, but angrily tell you’re stupidly wrong. And your patients keep eating, keep smoking, and keep sickening and dying too soon.

At what point do you grow tired? At what point do you ask, “Why should I care, if they don’t.” At what point do you surrender? After all, my wife and I already have Social Security and Medicare and belong to country clubs and enough money to last us.

But then I think of my children and grandchildren and the world they will occupy, all because of national ignorance and the refusal to learn — not just refusal, but angry, insulting refusal.

So I write yet one more article hoping that somehow this will be the one that causes the truth to prevail, but knowing it probably won’t — like the sucker hoping his lottery number will come through.

It’s not that I have nothing else to do. I can write fiction and poetry. I can paint. I can keep playing tennis and schmoozing with my friends.

I tell myself, this is more important.

But, I really, really am growing weary of telling my obese, smoking, refusing-to-learn “patients” how they can live better, longer lives, when they don’t seem to care about themselves.

I really, really am tired of “doing the Semmelweis.”

Rodger Malcolm Mitchell
Monetary Sovereignty

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Ten Steps to Prosperity:
1. ELIMINATE FICA (Ten Reasons to Eliminate FICA )
Although the article lists 10 reasons to eliminate FICA, there are two fundamental reasons:
*FICA is the most regressive tax in American history, widening the Gap by punishing the low and middle-income groups, while leaving the rich untouched, and
*The federal government, being Monetarily Sovereign, neither needs nor uses FICA to support Social Security and Medicare.
2. FEDERALLY FUNDED MEDICARE — PARTS A, B & D, PLUS LONG TERM CARE — FOR EVERYONE (H.R. 676, Medicare for All )
This article addresses the questions:
*Does the economy benefit when the rich afford better health care than the rest of Americans?
*Aside from improved health care, what are the other economic effects of “Medicare for everyone?”
*How much would it cost taxpayers?
*Who opposes it?”
3. PROVIDE AN ECONOMIC BONUS TO EVERY MAN, WOMAN AND CHILD IN AMERICA, AND/OR EVERY STATE, A PER CAPITA ECONOMIC BONUS (The JG (Jobs Guarantee) vs the GI (Guaranteed Income) vs the EB) Or institute a reverse income tax.
This article is the fifth in a series about direct financial assistance to Americans:

Why Modern Monetary Theory’s Employer of Last Resort is a bad idea. Sunday, Jan 1 2012
MMT’s Job Guarantee (JG) — “Another crazy, rightwing, Austrian nutjob?” Thursday, Jan 12 2012
Why Modern Monetary Theory’s Jobs Guarantee is like the EU’s euro: A beloved solution to the wrong problem. Tuesday, May 29 2012
“You can’t fire me. I’m on JG” Saturday, Jun 2 2012

Economic growth should include the “bottom” 99.9%, not just the .1%, the only question being, how best to accomplish that. Modern Monetary Theory (MMT) favors giving everyone a job. Monetary Sovereignty (MS) favors giving everyone money. The five articles describe the pros and cons of each approach.
4. FREE EDUCATION (INCLUDING POST-GRAD) FOR EVERYONEFive reasons why we should eliminate school loans
Monetarily non-sovereign State and local governments, despite their limited finances, support grades K-12. That level of education may have been sufficient for a largely agrarian economy, but not for our currently more technical economy that demands greater numbers of highly educated workers.
Because state and local funding is so limited, grades K-12 receive short shrift, especially those schools whose populations come from the lowest economic groups. And college is too costly for most families.
An educated populace benefits a nation, and benefiting the nation is the purpose of the federal government, which has the unlimited ability to pay for K-16 and beyond.
5. SALARY FOR ATTENDING SCHOOL
Even were schooling to be completely free, many young people cannot attend, because they and their families cannot afford to support non-workers. In a foundering boat, everyone needs to bail, and no one can take time off for study.
If a young person’s “job” is to learn and be productive, he/she should be paid to do that job, especially since that job is one of America’s most important.
6. ELIMINATE CORPORATE TAXES
Corporations themselves exist only as legalities. They don’t pay taxes or pay for anything else. They are dollar-tranferring machines. They transfer dollars from customers to employees, suppliers, shareholders and the government (the later having no use for those dollars).
Any tax on corporations reduces the amount going to employees, suppliers and shareholders, which diminishes the economy. Ultimately, all corporate taxes come around and reappear as deductions from your personal income.
7. INCREASE THE STANDARD INCOME TAX DEDUCTION, ANNUALLY. (Refer to this.) Federal taxes punish taxpayers and harm the economy. The federal government has no need for those punishing and harmful tax dollars. There are several ways to reduce taxes, and we should evaluate and choose the most progressive approaches.
Cutting FICA and corporate taxes would be an good early step, as both dramatically affect the 99%. Annual increases in the standard income tax deduction, and a reverse income tax also would provide benefits from the bottom up. Both would narrow the Gap.
8. TAX THE VERY RICH (THE “.1%) MORE, WITH HIGHER PROGRESSIVE TAX RATES ON ALL FORMS OF INCOME. (TROPHIC CASCADE)
There was a time when I argued against increasing anyone’s federal taxes. After all, the federal government has no need for tax dollars, and all taxes reduce Gross Domestic Product, thereby negatively affecting the entire economy, including the 99.9%.
But I have come to realize that narrowing the Gap requires trimming the top. It simply would not be possible to provide the 99.9% with enough benefits to narrow the Gap in any meaningful way. Bill Gates reportedly owns $70 billion. To get to that level, he must have been earning $10 billion a year. Pick any acceptable Gap (1000 to 1?), and the lowest paid American would have to receive $10 million a year. Unreasonable.
9. FEDERAL OWNERSHIP OF ALL BANKS (Click The end of private banking and How should America decide “who-gets-money”?)
Banks have created all the dollars that exist. Even dollars created at the direction of the federal government, actually come into being when banks increase the numbers in checking accounts. This gives the banks enormous financial power, and as we all know, power corrupts — especially when multiplied by a profit motive.
Although the federal government also is powerful and corrupted, it does not suffer from a profit motive, the world’s most corrupting influence.
10. INCREASE FEDERAL SPENDING ON THE MYRIAD INITIATIVES THAT BENEFIT AMERICA’S 99.9% (Federal agencies)Browse the agencies. See how many agencies benefit the lower- and middle-income/wealth/ power groups, by adding dollars to the economy and/or by actions more beneficial to the 99.9% than to the .1%.
Save this reference as your primer to current economics. Sadly, much of the material is not being taught in American schools, which is all the more reason for you to use it.

The Ten Steps will grow the economy, and narrow the income/wealth/power Gap between the rich and you.

MONETARY SOVEREIGNTY

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